The Length of Ppp Tendering Periods: a Multi-country Analysis

Eoin Reeves (University of Limerick)
Darragh Flannery (University of Limerick)
Rick Geddes (Cornell University)
Donal Palcic (University of Limerick)

Abstract: Substantial infrastructure deficits are a major challenge for countries around the world and PPPs continue to play an important role in addressing the challenge of delivering critical infrastructure. PPPs, however, are often characterised by lengthy tendering periods, defined as the difference between contract notice and financial close. Tendering periods are important because they account for a significant proportion of overall project delivery time. Slow tendering deters bidders and thus reduces competition for contracts. We source data on 1,295 PPP projects in eight countries and use a duration analysis model to empirically examine the factors that impact tendering period duration. Our findings show that there is significant variation across countries and sectors. When we control for other variables we find that Ireland and the United Kingdom stand out as the countries with the longest tendering periods. In sectoral terms the longest tendering periods were found in the health, housing, and defence sectors. However, PPPs in the defence sector are not associated with significantly longer tendering periods once the UK is excluded.

Download the paper